By: Rodriguez H.B. No. 2020
73R804 LJD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the registration of telemarketers; providing a penalty.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. DEFINITIONS. In this Act:
1-5 (1) "Commissioner" means the commissioner of the Texas
1-6 Department of Licensing and Regulation.
1-7 (2) "Department" means the Texas Department of
1-8 Licensing and Regulation.
1-9 (3) "Person" means an individual, corporation,
1-10 organization, business trust, estate, trust, partnership,
1-11 association, or any other private legal entity.
1-12 (4) "Telemarketer" means a person engaged in the
1-13 business of telemarketing.
1-14 (5) "Telemarketing" means soliciting the sale or lease
1-15 of a good or service by making a telephone call to a potential
1-16 buyer, including a call made by an automated dialing or recorded
1-17 message device.
1-18 SECTION 2. REGISTRATION REQUIREMENT. A person may not
1-19 engage in the business of telemarketing in this state without a
1-20 certificate of registration issued by the department under this
1-21 Act. A separate application and certificate of registration is
1-22 required for each location from which the person conducts the
1-23 business of telemarketing; however, a separate certificate is not
1-24 required for each individual employed at that location.
2-1 SECTION 3. POWERS AND DUTIES OF DEPARTMENT. (a) The
2-2 department shall:
2-3 (1) prescribe application forms for original and
2-4 renewal certificates of registration;
2-5 (2) set application and registration fees in amounts
2-6 that are reasonable and necessary to defray the costs of the
2-7 administration of this Act; and
2-8 (3) adopt rules as necessary to implement this Act.
2-9 (b) The department may take other action as necessary to
2-10 enforce this Act.
2-11 SECTION 4. REGISTRATION STATEMENT. (a) A person must file
2-12 a registration statement with the department before engaging in the
2-13 business of telemarketing in this state. The registration
2-14 statement must contain:
2-15 (1) the name and address of the telemarketer;
2-16 (2) the address of the location from which the
2-17 telemarketer proposes to engage in telemarketing;
2-18 (3) the name and address of any person who directly or
2-19 indirectly owns or controls 10 percent or more of the outstanding
2-20 shares of stock of the telemarketer;
2-21 (4) a description of the type of goods or services
2-22 offered by the telemarketer; and
2-23 (5) a full and complete disclosure of any litigation
2-24 relating to telemarketing brought against the telemarketer or an
2-25 owner, officer, or director of the telemarketer that was completed
2-26 within three years before the date on which the statement is filed
2-27 or is pending on the date of filing.
3-1 (b) The telemarketer shall update the statement whenever a
3-2 material change occurs in the information on file. The
3-3 telemarketer shall notify the department if a legal action relating
3-4 to the telemarketer's business is brought against the telemarketer
3-5 or an owner, officer, or director of the telemarketer. The
3-6 telemarketer shall notify the department in writing not later than
3-7 the 10th day after the date on which the telemarketer receives
3-8 notice of the action.
3-9 (c) Each telemarketer shall maintain a copy of the
3-10 registration statement in the records of the telemarketer. The
3-11 telemarketer shall send a copy of the statement to a person who
3-12 purchases or proposes to purchase goods or services from or through
3-13 the telemarketer.
3-14 SECTION 5. BOND. (a) Each application for registration as
3-15 a telemarketer must be accompanied by a surety bond in the amount
3-16 of $10,000, payable to the state and conditioned on faithful
3-17 compliance with this Act. The registrant shall maintain the bond
3-18 until the second anniversary of the date on which the registrant
3-19 ceases to operate as a telemarketer in this state.
3-20 (b) This section does not limit the recovery of damages to
3-21 the amount of the surety bond.
3-22 SECTION 6. ISSUANCE OF CERTIFICATE. The department shall
3-23 issue a certificate of registration to a telemarketer that files a
3-24 complete registration certificate, posts the required bond, and
3-25 pays the required fee.
3-26 SECTION 7. RENEWAL. (a) A certificate of registration
3-27 issued under this Act is valid for one year after the date of
4-1 issuance. A registrant may renew a certificate of registration
4-2 before the expiration date of the certificate by paying the renewal
4-3 fee and complying with other renewal requirements as prescribed by
4-4 department rule. The department shall issue a renewal certificate
4-5 to the registrant at the time of the renewal.
4-6 (b) The department shall notify each registrant in writing
4-7 of the pending expiration not later than the 30th day before the
4-8 date on which the certificate of registration expires.
4-9 SECTION 8. DISPLAY OF CERTIFICATE; CONSUMER COMPLAINT
4-10 NOTICE. (a) Each telemarketer registered under this Act shall
4-11 display the certificate of registration in a conspicuous place in
4-12 the telemarketer's principal office.
4-13 (b) Each telemarketer registered under this Act shall
4-14 display in the telemarketer's principal office a sign provided by
4-15 the department that contains:
4-16 (1) the name of the department;
4-17 (2) the mailing address and telephone number of the
4-18 department's main office; and
4-19 (3) a statement informing consumers that a complaint
4-20 against a telemarketer registered under this Act may be directed to
4-21 the department.
4-22 SECTION 9. RECORDS. Each registrant shall maintain records
4-23 relating to the operation of the telemarketing business as
4-24 prescribed by department rule.
4-25 SECTION 10. DENIAL, SUSPENSION, OR REVOCATION OF CERTIFICATE
4-26 OF REGISTRATION. (a) The department may deny, suspend, revoke, or
4-27 reinstate a certificate of registration.
5-1 (b) The department by rule shall establish:
5-2 (1) the grounds for denial, suspension, revocation, or
5-3 reinstatement of a certificate of registration; and
5-4 (2) procedures for disciplinary actions.
5-5 (c) Proceedings relating to the suspension or revocation of
5-6 a certificate of registration issued under this Act are subject to
5-7 the Administrative Procedure and Texas Register Act (Article
5-8 6252-13a, Vernon's Texas Civil Statutes) and its subsequent
5-9 amendments.
5-10 (d) A person whose certificate of registration has been
5-11 revoked may apply for a new certificate of registration after the
5-12 first anniversary of the date of the revocation.
5-13 SECTION 11. UNENFORCEABLE CONTRACT; DECEPTIVE TRADE
5-14 PRACTICE. (a) A contract with a telemarketer who does not comply
5-15 with this Act or that is entered into in reliance on a fraudulent
5-16 or misleading representation, notice, or advertisement of the
5-17 telemarketer is void and unenforceable as contrary to public
5-18 policy.
5-19 (b) A violation of this Act is a false, misleading, or
5-20 deceptive act or practice within the meaning of Section 17.46,
5-21 Business & Commerce Code, and its subsequent amendments. Any
5-22 public or private right or remedy prescribed by Chapter 17 of that
5-23 code and its subsequent amendments may be used to enforce this
5-24 subsection.
5-25 SECTION 12. INJUNCTIVE RELIEF. (a) If it appears that a
5-26 person is violating or is threatening to violate this Act or a rule
5-27 adopted under or order related to this Act, the commissioner may
6-1 institute an action for injunctive relief to restrain the person
6-2 from engaging in or continuing the violation.
6-3 (b) An action brought under this section must be filed in
6-4 district court in Travis County.
6-5 (c) The commissioner may recover reasonable expenses
6-6 incurred in obtaining injunctive relief under this section,
6-7 including court costs, reasonable attorney's fees, witness fees,
6-8 and deposition expenses.
6-9 SECTION 13. CRIMINAL PENALTY. (a) A person commits an
6-10 offense if the person knowingly or intentionally violates a
6-11 provision of this Act or a rule adopted under this Act.
6-12 (b) An offense under this section is a Class A misdemeanor.
6-13 SECTION 14. EFFECTIVE DATE; TRANSITION. This Act takes
6-14 effect September 1, 1993, except that a telemarketer is not
6-15 required to register under this Act before January 1, 1994.
6-16 SECTION 15. EMERGENCY. The importance of this legislation
6-17 and the crowded condition of the calendars in both houses create an
6-18 emergency and an imperative public necessity that the
6-19 constitutional rule requiring bills to be read on three several
6-20 days in each house be suspended, and this rule is hereby suspended.